ACH Payment life cycle

DRAFT → AML SCREENING

When a user creates an ACH outgoing transfer, the status would be DRAFT, and when the transfer is initiated, the status would change from DRAFT to AML SCREENING, as the transfer would go through an AML check by Mbanq.

DRAFT →EXECUTION_FAILURE

When a user submits an ACH outgoing transfer, the status would change from DRAFT to EXECUTION_FAILURE if the transfer request is invalid.

Example: If the user has entered any incorrect details, insufficient funds, requested a timeout, or the user exceeded their limits

DRAFT → CANCELLED

If the user has decided to cancel his ACH outgoing request or the Back office user has decided to cancel the ACH outgoing request(let’s say due to some fraudulent activities by the user) then the status will change from DRAFT to CANCELED.

AML_SCREENING → AML_REJECTED

After DRAFT, if all the details entered by the user is correct, then the transfer will go for AML screening where the mbanq system will go through a limit check, OFAC check, and Manual Review( a mbanq compliance member will manually check the transfer), etc. During this process, the status will be AML_SCREENING.

During the AML check if any of the AML criteria are not met then the transfer will be rejected and the status will change from AML_SCREENING to AML REJECTED

AML_SCREENING → EXECUTION_SCHEDULED

Once a transfer clears the AML check, its status changes from AML_SCREENING to EXECUTION_SCHEDULED, which means that the transfer is ready for processing and the transfer will be sent in batch to ODFI.

Note: All the ACH outgoing requests are submitted at EOD.

EXECUTION_SCHEDULED → EXECUTION_PROCESSING

Once an ACH transfer is sent to the ODFI, Mbaqn will wait for a response from ODFI regarding the transfer. During this waiting period, the status would be EXECUTION_PROCESSING.

EXECUTION_PROCESSING →EXECUTION_SUCCESS

After EXECUTION_PROCESSING, if the transfer has reached the RDFI then the status would be EXECUTION_SUCCESS.

Note: there won't be any response from the clearing house. Mbanq will wait for 3 days. If there is no response, then it is considered a success. There would be a response only in case of return.

i.e., the transfer has reached the bank of the receivers..

EXECUTION_SUCCESS→ RETURNED

Once the returned transfer has been processed and credited to the user, the transfer will change from EXECUTION_SUCCESS to RETURNED.

AML_SCREENING → AML_REJECTED

All the Incoming transfers will go through AML screening, where the mbanq system will do a limit check, OFAC check, and Manual Review( a mbanq compliance member will manually check the transfer), etc. During this process, the status will be AML_SCREENING.

During the AML check, if any of the AML criteria are not met, then the transfer will be rejected and the status will change from AML_SCREENING to AML_REJECTED

AML_REJECTED → RETURN_PROCESSING

After a transfer gets the AML REJECTED status (i.e., rejected by AML), the transfer status would change to RETURN_PROCESSING.

i.e., the transfer would be returned.

AML_SCREENING →EXECUTION_SUCCESS

During the AML check, when the status is AML_SCREENING, if the transfer clears the AML check, then the status will change to EXECUTION_SUCCESS.

EXECUTION_FAILURE→ RETURN_PROCESSING

Let’s say there is an incoming transfer that is rejected by AML or there isn’t any account number associated with the incoming transfer(invalid data), then the status would change from EXECUTION_FAILURE to RETURN_PROCESSING.

RETURN_PROCESSING→ RETURNED

Once the transfer that needs to be returned has been processed and sent to the ODFI, the status would change from RETURN_PROCESSING to RETURNED.